David Quintieri, author of “The Money GPS,” is so worried about the unfolding economic calamity he wrote a book about how to survive it. Quintieri says, “There is no other way out but a collapse . . . the collapse isn’t coming, we’ve already begun.” One sure sign the collapse is in full swing, Quintieri contends, “There’s no semblance of a free market what-so-ever, that’s completely gone. The numbers you see on TV and newspapers are completely fraudulent.” So, what do you need to do to prepare?
Just three stories today, but they are big ones–North Korea, the Middle East and the ongoing banking crisis. North Korea has rattled its saber in the past, but not this loudly. Any talk that this is another bluff to get the world to back off on the sanctions for its nuclear program is underestimating the seriousness of the situation. North Korea has the 5th biggest army in the world, and it faces the 6th biggest army in the world in South Korea. Could the North win an all-out war? Probably not, but that does not mean it couldn’t do serious damage to South Korea. The U.S. is taking the threat seriously because it has been flying training missions with B-2 bombers as well as stealth fighters. The B-2 is designed to carry nuclear weapons, and some in Congress are talking “preemptive strike.” Mistakes can happen, and when countries are armed with nuclear weapons, it amplifies this dire situation.
To say the drama and panic being put out by the mainstream media (MSM) is unfounded hype is a gross understatement. The budget cuts known as “sequestration” will force mandatory cuts to military and social programs. These cuts are really pretty minor when you look at the more than $3.6 trillion in spending for the U.S. Yes, there will be some pain. Budget cuts are supposed to be painful, but to position this as an end of the world scenario is simply spin, poor reporting and fact checking by the MSM. The budget cuts we are getting are a fraction of what the original bi-partisan Simpson-Bowles commission came up with for debt reduction. It was spending cuts and tax increases that totaled $4 trillion over 10 years, and that just slowed the growth of government. The current tax increases and spending cuts are less than half of the bi-partisan $4 trillion deficit reduction proposal.
This sequestration fight has gotten very ugly. There have been hundreds of criminal detainees released by ICE. The White House says it was not involved. The White House was involved in asking for more tax increases so cuts didn’t have to be made. Famed Watergate reporter, Bob Woodward, has been super critical of the President on the sequestration issue. He said the President was guilty of “moving the goal posts” on new taxes. Woodward is now apparently involved in an open feud with the White House. There are reports that the White House told Woodward he would “regret” being critical. That is outrageous, and the MSM should be doing fact checking, not spin control for this or any administration.
Financial analyst Karl Denninger says, “If you keep raising the debt ceiling willy nilly, you’re going to get downgraded.” Denninger thinks the latest talks in Washington will only kick the fiscal can down the road. He says, “The truth of what we have to do is still politically impossible.” Denninger contends, “All you are seeing now is the tap dance around the fact we have to accept a 7, 8 maybe 10 to 15% fiscal contraction in GDP in order to come back into balance.”
Denninger says the sooner you take the hit, the better it will be because “the damage you take today is always less than the damage you will take if you kick the can and wait until tomorrow.” Don’t expect politicians to do the right thing–yet. Denninger says, “There is no stomach to put their jobs on the line . . . We need statesmen who will say I will get fired over this. . . . That’s the price the country has to pay.” Join Greg Hunter as he goes One-on-One with Karl Denninger of Market-Ticker.org.
Financial expert, Catherine Austin Fitts, says the sudden turn to gun control in the face of mounting financial problems is no accident. Fitts contends, “Guns protect honest people. It’s a little scary, the timing of this, and I think a little bit obvious. Gun control is a way to take away the financial assets of the honest hard working people.” She goes on to say, “I think there is a real risk here that they’re going to awake the sleeping giant.”
Looks like the gun control debate is taking precedence over the severe financial problems the country is facing. We have a debt ceiling issue that could call into question the “full faith and credit” clause of the Constitution. In other words, we might default on our debt. We have these automatic cuts that have been postponed, and we still don’t have a deal to cut government spending. So, why is the Obama Administration pushing gun control now? Does the government want to start disarming the public just in time for the next financial meltdown?
Financial analyst Gregory Mannarino says, “The Fed cannot and will not stop printing. . . If they do that, overnight the system would collapse. . . . They are in desperation mode.” Mannarino thinks the U.S. should be cutting spending and not raising the debt ceiling. He contends, “By raising the debt ceiling, we are borrowing from our MasterCard to pay for our Visa.” Mannarino says global central banks are all “. . . purchasing gold and silver in record numbers. Meanwhile, they are flooding the world with fiat currency.”
Despite a lackluster market in precious metals, Mannarino thinks people should keep accumulating gold and especially silver. Mannarino proclaims, “Silver is the most undervalued asset in the history of the world.” Mannarino predicts the middle class will be left “desperate, distraught and completely wiped out . . . when this thing collapses. We’re going to see a two-tier society.” Mannarino says it’s all because “we have a madman running the Federal Reserve.” Join Greg Hunter as he goes One-on-One with Gregory Mannarino.
Chris Martenson of PeakProsperity.com says, “We have an economy that requires constant exponential growth . . . that won’t happen. We’re on an unsustainable course.” Martenson says the next 20 years will look nothing like the last 20 years. He predicts, “The crisis really is going to belong to the people who don’t see it coming.”
Martenson believes, “Global growth will never return to its former glory days.” The days of cheap natural resources are gone. Martenson says to go along with that phenomenon, “The risks are piling up in the financial system. . . . The Federal Reserve is printing, printing, printing . . . we’re going to have a world class currency crisis.” Given the current situation of a broken money system and dwindling natural resources, Martenson says, “I don’t see how you avoid a hard landing at this point.” Join Greg Hunter as he goes One-on-One with Chris Martenson from PeakProsperity.com.
Financial analyst Gregory Mannarino says, “The Federal Reserve is going to print into oblivion. Why? Because cash is going out of style.” It was recently reported the Fed is buying 90% of U.S. Treasuries. Mannarino contends, “The Federal Reserve has to go out and buy Treasury bonds. It they don’t do this, it’s over . . . the system collapses. The Fed is now the lender of last resort.” Mannarino predicts not only America, but the world, is headed for a collapse.
“Nothing they do now can change the trajectory we are on, which is the mother of all collapses of the financial system–on a global level,” says Mannarino. When that happens, what is going to happen to all the asset classes? Mannarino says, “You got to be nuts to buy 10-Year Treasury bonds . . . . At some point, it will be the free market that will decide fair value with regard to everything across the board, including debt.” Mannarino thinks interest rates will spike and “commodities are going to go to the moon . . . gold and silver are going up over the long term.” Join Greg Hunter as he goes One-on-One with Gregory Mannarino.
Once again, there are two multifaceted stories dominating the news. They are the Middle East and the U.S. financial crisis. Syria is in a full blown civil war, and it is spilling out into Turkey and Lebanon. So far, 40,000 Syrians have been killed in this conflict. The President warned the increasingly desperate Assad regime not to use chemical weapons. A U.S. aircraft carrier group now sits off the Syrian coast. The Obama administration is also very worried about these chemical weapons showing up in the hands of terrorists. It has been widely reported that U.S. arms are getting into the hands of al-Qaeda.
The cease-fire between Hamas and the Israelis is holding, but there’s a growing riff with the latest announcement of new Israeli settlements being constructed. It is only a matter of time before the shooting starts again.
Real estate expert Fabian Calvo says there’s more to the story about rising prices in the housing market than what’s reported by the mainstream media. Calvo charges, “There’s a tremendous amount of manipulation . . . Yes, prices have gone up 3%. I see it, but it’s because the inventory has been suppressed on purpose by big players . . . not foreclosing on properties.” Calvo should know because he runs a company called TheNoteHouse.us. It buys and sells $100 million annually in distressed debt and real estate. Calvo says, “Over 20 million houses, on any given night in America, are completely sitting vacant.”
There is no bigger sign post about the state of the U.S. economy than the Federal Reserve’s announcement in September of “open ended”QE. This is unlimited money printing that is being done by the Fed until further notice. All the talk of the so-called “recovery” was reduced to a gigantic lie perpetrated on the American people. If the economy was in a “real recovery,” the Fed would be raising interest rates, and there would be no need to create $85 billion each and every month to “stimulate” the economy. Former Reagan budget director David Stockman says the Fed is on a “money printing binge.” He said three weeks ago on FOX,“We’ve never had a central bank that has printed this much money. . . . I don’t think they can whistle this tune very much longer.” To that, host Neil Cavuto said, “So if you had a lead suit, you would buy it. If you had a cyanide pill you would take it.” I think Mr. Cavuto was trying to make a joke, but nothing is funny about a dying empire.
Renowned investor Jim Sinclair explained money printing by the Fed on his JSMinenset.com website recently by saying, “The economy is a drug addict. The creation of money is history making in a modern economy and money creation acts exactly like a drug. Like a drug the more you take, the more you need. The more money you create, the more money you must continue to create until it goes to infinity. You go cold turkey on money creation, you unleash the economic wrath of hell in the entire Western world. It all comes down in one great implosion.” How much trouble is the U.S. economy in that its central bank has to create unprecedented amounts of currency to keep it from “one great implosion”?Is there any wonder why Mr. Sinclair predicts gold is going about $3,000 per ounce in the not-so-distant future, and will ultimately hit $12,000 per ounce. (I would take Mr. Sinclair seriously. He has a track record of making very big calls on gold that date back to the 1970′s. I wrote about this 2 years ago.)
The third and final Presidential debate was this week, and I thought it was a draw. Neither Romney nor Obama scored a knockout blow. I can’t believe we had these debates and not a single question was asked about the $85 billion a month being printed by the Fed. This is unprecedented in human history. What could go wrong?
“Fix the Debt” is what influential CEOs are saying to Congress. A group has gotten together to persuade Congress to avoid the so-called fiscal cliff at the end of the year. I don’t see how this is going to come about unless there is a clean sweep of the House, Senate and Presidency by one party or the other. I find this pretty rich in lieu of the fact we spent trillions bailing out the banks. I didn’t hear the CEOs bitching about this when the Fed was busy printing up $16 trillion to bail out everyone from Harley Davidson to Toyota to foreign and domestic banks. They want to cut spending? How about stopping all the bailouts. Not a word mentioned about this with the “Fix the Debt” CEOs.